Canadian billionaire Prem Watsa’s Fairfax India to acquire additional 10% stake in Bengaluru airport

Bengaluru airport's T2 (representational picture)

Fairfax India Holdings Corporation will acquire an additional 10 percent stake in Bangalore International Airport Limited for Rs 2,116.5 crore ($255 million), taking its stake in BIAL to 74 percent.

Fairfax India will acquire the additional equity from Siemens Project Ventures GmbH, a part of Siemens Financial Services, the company said on December 3.

“This additional investment in BIAL reflects our confidence in its continued growth and the outstanding track record of Hari Marar and his management team in capitalising on the airport’s opportunities,” Fairfax India founder Prem Watsa said, referring to BIAL’s chief executive officer.

Fairfax India plans to seek shareholder approval for the transaction at a special meeting expected to be held in January 2025.

Once done, Fairfax India’s equity in BIAL will rise from 64 percent to 74 percent. This will include Fairfax India’s 30.4 percent and 43.6 percent by its subsidiary, Anchorage Infrastructure Investments Holdings Limited.

The stakes held by the Airports Authority of India (AAI) and Karnataka State Industrial and Infrastructure Development Corporation Limited (KSIIDC) will remain unchanged at 13 percent each. The deal is expected to close in the first quarter of 2025.

Also, read: Fairfax fully committed to Bengaluru airport investment, says BIAL CEO Hari Marar

BIAL, a private company based in Bengaluru, operates the Kempegowda International Airport Bengaluru (KIAB) under a concession agreement with the Centre.

Kempegowda is the first greenfield airport in India developed through a public-private partnership model. The agreement grants BIAL exclusive rights to develop, design, finance, construct, maintain, operate and manage the airport.